Standard Chartered Predicts $1T Treasury Boost From Stablecoins

• Standard Chartered forecasts stablecoin market cap will surge from $304B to $2T by 2028.
• Stablecoin reserve parking in T-bills could generate up to $1T in new Treasury bill demand.
• Growth is tied to macroeconomic trends, meaning it can happen without a crypto bull market.

Standard Chartered has made a bold forecast about stablecoins. The bank predicts the stablecoin market cap will grow from $304 billion to $2 trillion by 2028. That kind of growth would send shockwaves through the US Treasury market. 

As stablecoin issuers park reserves in short-term government debt, demand for Treasury bills could rise by $800 billion to $1 trillion. The bank attributes this growth to macroeconomic trends, not crypto-native adoption.

Stablecoins Are Already Reshaping Treasury Demand

Most people do not think of stablecoins as Treasury buyers. But that is exactly what they are. Issuers like Tether and Circle hold short-term US Treasuries to back their tokens. 

They earn yield on those reserves while keeping their stablecoins fully backed. At $304 billion in market cap today, stablecoins already represent hundreds of billions in T-bill demand.

Milk Road pointed this out, noting the market has quietly shifted. The institutional conversation around stablecoins used to focus on regulatory risks and potential bans. That narrative is now changing fast. 

Stablecoin issuers are becoming too large to ignore, and their role in Treasury markets is a big reason why.

Standard Chartered’s forecast puts this into sharper focus. Scale the market to $2 trillion and the Treasury demand grows with it. The bank sees this as structural buying pressure at a critical time for US debt markets.

Why Macroeconomic Trends Are Driving the Growth

Standard Chartered is clear on one point. This growth does not depend on Bitcoin or Ethereum rallying. It does not require a crypto boom to play out. The drivers are macroeconomic. Global demand for dollar-denominated assets remains strong. 

Stablecoins offer a fast, accessible way to hold dollar exposure without a traditional bank account.

That makes stablecoin adoption a broader financial story, not just a crypto one. As more users and businesses around the world adopt stablecoins, issuers grow larger. Larger issuers buy more Treasuries. The cycle feeds itself without needing a bull market in crypto assets.

Milk Road noted that this shift happens even if major cryptocurrencies trade sideways. For many in the traditional finance world, that framing changes the conversation entirely.

What This Means for Crypto Regulation and Markets

The political angle here is hard to miss. Entities buying nearly a trillion dollars in US government debt carry serious weight. 

Standard Chartered’s forecast suggests stablecoin issuers will gain significant political leverage as they grow. That makes aggressive regulatory crackdowns far less likely.

Walter Bloomberg flagged this forecast on X, highlighting the shift from structural concerns to macro-driven growth. The framing matters. 

Regulators and lawmakers respond differently to industries that support government debt markets. Stablecoins buying Treasuries at this scale changes how policymakers see the sector.

For crypto markets broadly, that is a meaningful shift. Regulatory clarity tends to follow systemic importance. If Standard Chartered’s numbers prove right, stablecoins may soon cross the threshold where global regulators have little choice but to provide clear frameworks. That outcome benefits the entire crypto space.

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